(d) Find the least-squares regression line treating the rate of return of Company 1 as the explanatory variable. y=x+O
(d) Find the least-squares regression line treating the rate of return of Company 1 as the explanatory variable. y=x+O
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
Related questions
Question

Transcribed Image Text:Ques
= Homework: Ch 8 - Sampling Distributions
Critical values of the correlation coefficient
ars. Com
- X Int.
Critical Values for Correlation Coefficient
Data table
3 0,997
4 0.950
5 0.878
6 0.811
7 0.754
Year
Rate of Return of Company Rate of Return of Company
ble. Chod
6
2
2007
0.203
0.402
8
0.707
9 0.666
10 0.632
2008
0.310
0.510
2009
0.267
0.410
11 0.602
12 0.576
13 0.553
14 0.532
15 0.514
16 0.497
2010
0.195
0.426
2011
-0.101
-0.060
2012
- 0.130
-0.151
2013
-0.234
-0.357
2014
0.264
0.328
17 0.482
18 0.468
19 0.456
20 0.444
21 0.433
2015
0.090
0.207
2016
0.030
-0.014
2017
0.128
0.113
2018
- 0.035
0.027
22 0.423
23 0.413
24 0.404
25 0.396
Print
Done
26 0.388
27 0.381
Tne correlauon coeicient is-
(Round to three decimal places as needed.)
Print
Done

Transcribed Image Text:The accompanying data represent the annual rates of return of two companies' stock for the past 12 years. Complete parts (a) through (k).
O A.
OB.
0.50-
0.50-
0.00-
0.00-
-0.50-
-0.50-
-0.3
RR of Company 2
0.0
0.3
-0.3
0.0
0.3
RR of Company 1
OC.
0.30-
0.50-
0.00-
0.00-
-0.30-
-0.50-
o.0
0'5
0.0
0.3
-0.5
RR of Company 2
0.5
-0.3
RR of Company 1
(b) Determine the correlation coefficient between rate of return of Company 1 and Company 2.
The correlation coefficient is 0.966.
(Round to three decimal places as needed.)
(c) Based on the scatter diagram and correlation coefficient, is there a linear relation between rate of return of Company 1 and Company 2?
Yes
No
(d) Find the least-squares regression line treating the rate of return of Company 1 as the explanatory variable.
y=x+O
(Round to four decimal places as needed.)
RR of Company 1
RR of Company 1
RR of Company 2
RR of Company 2
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 1 images

Recommended textbooks for you

MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc

Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning

Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning

MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc

Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning

Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning

Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON

The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman

Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman